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ALASKA

University of Alaska / T. Rowe Price College Savings Plan

Type: Savings (with prepaid option)

Phone: 800-369-3641 or 866-277-1005 in Alaska

State tax deduction for residents: Alaska does not have an income tax

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $250 or $50 a month / $250,000

Alaska's flexible plan invests in highly rated T.Rowe Price mutual funds and allows college savers to enroll in any two of its investment options. Choose from a reasonably aggressive age-based portfolio or one of four fixed portfolios (stocks, fixed income, a mix and a preservation portfolio of bonds and money market funds). You also have the option to invest in the Advance College Tuition portfolio, a mix of 70% bonds and 30% stock, which offers a guarantee that earnings will at least meet tuition increases at the University of Alaska. The age-based portfolios have had above-average returns over five years; the fixed portfolios have been average to above-average. The equity portfolio, in particular, has been a standout in the past year.

In addition to the outstanding fund choices, this plan has reasonable costs. Fees are $30 a year (waived if you arrange automatic deposits, have a $25,000 account balance or invest in the ACT portfolio), plus up to 1.1% per year in combined asset management fees and mutual fund expenses. Another plan, Manulife College Savings, is available through brokers, but expenses run as high as 3.03%.

State College Savings Plans